Decision for Watermill Coaches Ltd (PM1012789)
Written confirmation of the decision of the Traffic Commissioner for Scotland for Watermill Coaches Ltd and Allan John Clark and Raymond Allan Clark, Transport Managers
IN THE SCOTTISH TRAFFIC AREA
WATERMILL COACHES LTD - PM1012789
AND
ALLAN JOHN CLARK – TRANSPORT MANAGER
AND
RAYMOND ALLAN CLARK – TRANSPORT MANAGER
CONFIRMATION OF THE TRAFFIC COMMISSIONER’S DECISION
Decision
The licence was made subject to a condition effectively curtailing by four vehicles from 23:45 tonight to 14 August 2026, taking account of potential business opportunities.
Background
Watermill Coaches Ltd holds a Standard National Public Service Vehicle Operator’s Licence authorising sixty-five vehicles. The Directors are Allan John Clark and Raymond Allan Clark, who are also named as the Transport Managers. There is an application nominating Ryan Clark to join them, having qualified in 2024.
There are three Operating Centres: Sites E2 & E3, Blackdog Industrial Centre, A90t City Boundary at Blackdog to C1C at Middlefield, Bridge Of Don AB23 8BT; Unit 6 Blackhouse Industrial Estate, Peterhead AB42 1BW: Townhead Quarry, Ythanbank, Ellon, AB41 7TE; and Barrasgate Road, Fraserburgh AB43 9QS Preventative Maintenance Inspections are said to be carried out in-house at 6-weekly intervals.
The operator apparently appeared at a Preliminary Hearing on 7 August 2017, connected to the sporting guidelines for coaches and no further action was taken.
Hearing
The Public Inquiry was listed for today, 2 June 2026, in the Tribunal Room of the Office of the Traffic Commissioner in Edinburgh. The operator was present in the form of Allan Clark, Director and Transport Manager, with Raymond Clark, Director and Transport Manager, appearing remotely, accompanied by Ryan Clark, nominated CPC holder, represented by Jonathan Backhouse of Backhouse Jones solicitors.
Issues
The public inquiry was called following notice that I was considering grounds to intervene in respect of this licence and specifically by reference to the following sections of the Public Passenger Vehicles Act 1981:
- 17(3)(a) – statements relating to inspection intervals, and to abide by conditions on the licence
- 17(3)(aa) – undertakings (vehicles to be kept fit and serviceable, effective driver defect reporting, complete maintenance records).
- 17(3)(b) – conditions on licence to notify changes relating to Directorships and the position of the Transport Managers.
- 17(1)(c) – Prohibition Notices
- 17(3)(e) – material changes:
- 17(1)(a) – repute, financial standing, professional competence.
- 28 Transport Act – Disqualification.
Allan Clark was also called to consider whether he had exercised effective and continuous management and therefore whether I should make a finding under section 17(1)(b) preventing him from relying on his Certificate of Professional Competence.
Raymond Clark was also called to consider whether he had exercised effective and continuous management and therefore whether I should make a finding under section 17(1)(b) preventing him from relying on his Certificate of Professional Competence.
The operator was directed to lodge evidence in support including financial, maintenance and other compliance documentation. Compliance documentation was to be submitted to DVSA by no later than 12 May 2026 with finance and any representations to be sent to this office by 19 May 2026. Original financial evidence was not produced, but the operator was given 14 days to do so, based on copy documents.
Summary of Evidence
On 15 December 2025 WM68 LLL was encountered at Inverurie Academy and attracted an S-marked prohibition for a defective tyre – tyre wall severely scuffed and cord or cords are exposed.
A maintenance investigation followed on 22 January 2026 undertaken by Vehicle Examiner Hal Mackie. He identified shortcomings and concluded that compliance management was ‘unsatisfactory’:
- Notifiable changes – at the time of the investigation, the directors listed on VOL did not match companies house (change of directors in May 2025 – Ann Christina Clark removed and Raymond Allan Clark added). This has since been updated on VOL (24 February 2026).
- Fleet check – an immediate prohibition issued to vehicle WM68 LLL during fleet check (defective doors) – random failure of emergency exit control lever. The cable failed during examination. X marked – not maintenance related.
- Inspection and Maintenance records – Records are not properly completed, with tyre tread depths and brake assessments routinely not recorded. Stretched inspections – 64% of safety inspections not completed within specified 6-weekly interval. Forward planner ineffective (intervals not adhered to).
- Driver defect reporting – ineffective walkaround checks – the S marked PG9 issued on 15 December 2025 should have been identified during driver walkaround check. There is no record of a walkaround check carried out that day. Two other instances noted of the vehicle used without a driver walkaround check recorded.
- Inspection facilities – 32% of safety inspections did not contain brake assessments. Tyre pressures and depths were not recorded. Annual test history indicates poor maintenance standards, with safety critical defect failures. Most final failures relate to brake defects, including a prohibition issued at annual test on 19 February 2025 in relation to brake systems and components.
- Wheel and tyre management – ineffective with S marked Prohibition issued for a tyre with cords exposed. Driver walkaround checks and safety inspections gave rise to the prohibition (no walkaround check on day of prohibition; tyre depths and tyre pressures not recorded at PMIs, and tyre age not recorded across the entire fleet).
- Prohibition Assessment – S marked Prohibition issued to WM68 LLL on 15 December 2025 for a defective tyre, with cords exposed on the nearside outer sidewall, which should have been noted by the driver during walkaround checks. There was no record of a driver walkaround check completed that morning. The defect was longstanding and should have been detectable before the vehicle was driven that day, and likely for a number of days prior.
- Transport Management assessment – CPD was undertaken 9 years ago, with partial control of operations, having failed to keep up to date with relevant changes in standards and legislation, ensure drivers complete satisfactory walkaround checks and report defects in writing, ensure unroadworthy vehicles are not in use and that Preventative Maintenance Inspections are carried out within the specified interval.
There was an extensive response, prepared by Raymond Clark. He recorded that the operator had previously commissioned independent audits and that the operator would consider conducting a further audit. The response attached supporting evidence, but can be summarised as follows:
- It was an oversight that the Director change was not updated on VOL – it was updated shortly after the site visit.
- The prohibition was a random failure that occurred with the emergency exit lever cable. It was addressed shortly thereafter, and the prohibition removed within a few hours.
- In April 2025, a computer-based system (VMS powered by Distinctive Systems) was introduced to log maintenance records. The workshop manager (Ryan Clark) overseeing the implementation of the system failed to deliver adequate oversight, and following the prohibition, he was reassigned to a different role. ‘Brian McKay’ is now the workshop manager and has proved competent and proactive. Structure and accountability should improve with Mr McKay’s oversight. An email was provided setting out his workshop duties and responsibilities.
- Prior to the visit, tyre pressures and tread depths were checked but not recorded. All Preventative Maintenance Inspection records now include tyre tread depths and pressures. Any tyre with a tread depth below 3mm will now be replaced. Evidence of a new job card was provided, with added section for tyre pressures.
- Brake tests are now carried out at each Preventative Maintenance Inspection.
- Stretched Preventative Maintenance Inspections arose as not all entries from the old system had been transferred into the new system. The hard-copy system was to be totally phased out, and VMS will exclusively be used going forward.
- Due to the nature of work, vehicles are not always in use (e.g. during school holidays). The operator (Raymond Clark) indicated: “we incorrectly interpreted the six weekly inspection interval as flexible guidance.” A revised scheduling system has been implemented on the VMS system, to alert the workshop manager of upcoming inspections. Evidence provided of new forward planner was provided.
- Monthly compliance reviews introduced to ensure adherence to inspection intervals.
- Various meetings had been held with maintenance staff to discuss the implementation of changes. Monthly meetings have been introduced to monitor inspection compliance, and work has been delegated more evenly.
- Walkaround checks and defect reporting are carried out on VMS. Notification is received of walkaround checks and any defects via email – this was initially monitored by the head office and was later monitored by Ryan Clark once the full VMS package was introduced.
- Random compliance checks conducted by Raymond Clark identified instances of missing walkaround checks, which he raised with Ryan Clark and sent a reminder to drivers (evidence provided). Ryan Clark has since moved from the position of workshop manager.
- Walkaround check failures all relate to driver ‘Findlay Gilmore’ – following internal reviews, he has been issued with a ‘final written warning’ and closely monitored.
- Drivers are issued a staff handbook during onboarding, which sets out responsibilities. The operator suggested that the tyre defect likely resulted from contact with the curb, or dirt being wiped away, exposing the cord. A lack of visibility might be attributed to cleanliness or a lack of light at the time drivers set off, however, handheld and headtorches are available at the O/C.
- Gate checks had been introduced at each depot (gate check record provided), and increased oversight of the driver defect reporting system. Driver training provided if issues are identified at gate checks. A further reminder has been sent to all drivers regarding the importance of walkaround checks.
- Diagnostic equipment software had been upgraded at the Fraserburgh depot – if complex repairs are required, they can now be conducted on-site.
- Brake tests had been completed but not always printed or correctly stored. Examples of completed brake tests prior to an annual test were provided. The maintenance team had reviewed the brake tester and printed any missing tests. In future, everything would be stored electronically and at every inspection.
- Tread depths and pressures are now recoded at each inspection. Tyre age is recorded on a spreadsheet by the workshop manager. All drivers had been reminded of satisfactory walkaround checks and defect reporting. PG9 resulted from driver failure to complete and record walk around check. This was an isolated incident attributed to driver negligence and former workshop manager. Additional controls and monitoring had been implemented to improve walkaround check compliance.
Determination
Based on the evidence summarised above, I was satisfied that I should record adverse findings under the following sections of the Act: 17(3)(a) – statements relating to inspection intervals, and to abide by conditions on the licence; 17(3)(aa) – undertakings (vehicles to be kept fit and serviceable, effective driver defect reporting, complete maintenance records); 17(3)(b) – conditions on licence to notify changes relating to Directorships and the position of the Transport Managers; 17(1)(c) – Prohibition Notices; 17(3)(e) – material change, with financial evidence to be produced.
Following the visit, Raymond Clark completed a 2-day CPC refresher course (on 27 and 28 January 2026). Mr Clark intended to complete refresher training every 2-years. Allan Clark was [REDACTED] in June 2023, but was devoting 40 hours per week, although some responsibilities had been delegated to Raymond Clark.
Written representations referred to the history of the operation. Bran Smith retired from the company in 2018. Raymond Clark joined full time in September 2014 later followed by his other son Ryan Clark in August 2017. Raymond Clark was nominated as
a Director in May 2025. The operator employs around eighty-eight staff which is a mixture of office staff, drivers and mechanics. The fleet is made up by 7 to 70 seat coaches which undertake a variety of work such as service work, private hire, and school transport.
Allan Clark has been the nominated transport manager for 44 years and was described as overseeing all Transport Manager operations, prior to this he oversaw the vehicle maintenance given his mechanical background. It is anticipated that he will retire in the near future but was scheduled to attend a 2-day Transport Manager Refresher course on 19 and 20 May 2026. I was alerted to recent challenges in his personal life. During the hearing, he took the sensible decision to relinquish the formal position of Transport Manager but to continue in his role as a Director. He will utilise his previous experience as a CPC holder to ensure that current Transport Managers are exercising effective and continuous management. This will also allow him to reduce his hours. I allowed that resignation without formal action but advised Mr Clark that he will need to establish more formal lines of reporting through the monthly compliance meetings.
Ryan Clark had been moved from his role overseeing driver compliance to Ellon, to ensure the roll out of the VMS system. That move had apparently upset the management of the workshop and established, but out-of-date ways of working. He was effectively told not to interfere with things that had been working like that for years. That has now been resolved with the introduction of Mr McKay, with his 30 years of experience. To his credit, Raymond Clark sought to clarify the position during evidence. He acknowledged that it was not appropriate to blame Ryan for the failings. The mechanics were said to have been with the business for many years but the transition from paper-based to electronic systems required a significant operational change across the business. At that time, Ryan Clark was predominantly based in Fraserburgh undertaking controlling work such as scheduling, driver, and vehicle tachograph downloads, covering school contracts when drivers are ill or have appointments.
It was suggested that Raymond Clark had been responsible for overseeing the maintenance side of the business following the DVSA inspection on the 22 January 2026 and was working with Ryan, providing assistance with driver management and tachograph compliance. The operator failed to provide the following documents to the Vehicle Examiner: first use inspection report – WM68 LLL (VOR 4 March to 24 April 2026), inspection record – YX25 OEY (due 4 May 2026), RX72 TWN (due 29 April 2026), VUI12567 (due 29 April 2026), WM14LLL (due 8 May 2026), VU06 XKX (due 4 May 2026). Nevertheless, Mr Mackie noted that there was a marked improvement in regard to brake testing, record keeping, and adherence to the statement of intent. There were occasional instances of driver reportable defects identified during safety inspections e.g. windscreen washer fluid low, and seatbelts jammed. He suggested that there was still some room for improvement regarding tyre management systems. Tyre pressures are not being recorded as presented during safety inspections. Mr Raymond Clark admitted that he had again thought that guidelines could be displayed on the workshop wall, but there was no need to record the actual readings. He appreciates that error now.
I was satisfied that the evidence did not amount to effective and continuous management. The representations acknowledged falling behind the times in terms of keeping the compliance systems of the operation up to date. It was stressed that the operator and Directors are committed to full compliance and have taken action following the investigation. I issued a warning to the remaining Transport Manager as to future conduct.
Ryan Clark is newly qualified having passed his CPC in September 2024 but has not acted in that capacity before. Ryan Clark has moved back to Fraserburgh and liaises with an officer in Ellon on day to day running of drivers. I was assured that the different types of work allow for effective management of different recording under retained EU and domestic schemes. It was recognised that he will require an introduction to the practical elements of the role. He too was due to attend training on 19 and 20 May 2026 and was to work with Allan and Raymond to gain hands on experience. Going forward he will be responsible for dealing with the drivers and the tachographs.
Going forward, Raymond Clark had produced lists of separate responsibilities for himself and Ryan Clark as Transport Managers attached to his letter of 22 May 2026. It was accepted that they would be jointly responsible for effective and continuous management of the transport operation. Raymond Clark will continue to undertake gate-checks at Fraserburgh, with Jordan the driver trainer fulfilling those responsibilities at Ellon. He described the various ways of monitoring effectiveness, including the use of sticky notes. All are recorded using the VMS system. There is a clear need to strengthen disciplinary intervention, given the matters recorded. The restructure allows a line of escalation to Allan Clark. Ryan Clark has experience in driver management but was less strong in dealing with established members of staff in the workshop. He should have been better supported. I allowed his appointment as a second Transport Manager on the statements of intent that he will continue to learn from more experienced CPC holders.
I took account of that fact that this is a well-established business, having traded for 47 years. It is currently undergoing a transition to bring the systems up to date and to enable Allan Clark to reduce his hours, with the view to both Raymond and Ryan taking over the business. I read the associated statements and noted the proposals and individual assurances. As above, the Public Inquiry presented an ideal opportunity to progress those changes. I nevertheless determined that deterrent action was required in order to strengthen the prospects of future compliance and to make clear to those involved that there cannot be a repeat of these failings. The licence was therefore made subject to a condition effectively curtailing by four vehicles from 23:45 tonight to 14 August 2026, taking account of potential business opportunities. It has retained discs when not required. Those must be returned to this office, immediately.
R Turfitt
Traffic Commissioner
4 June 2026